Market Update March 03, 2017

LIONX remains Fully Invested and Leveraged in historically low volatility type mutual funds and ETFs as of 3/3/17.  LIONX holds some Preferred, Strategic Income and Floating Rate mutual funds and a few High Yield and Preferred ETFs.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.)

The Trump Train has produced some nice steady gains for LIONX and the trend has continued higher, however we may be due for a pull-back.  I am a trend follower and I look at a lot of charts to help me discern the trend and the sustainability of that trend.  If I cannot find a tradable trend that I am comfortable with then I tend to just sit in cash until a new opportunity presents itself.  By prospectus, LIONX can be anywhere from 150% net short to 300% net long and it can invest in pretty much any asset class at the managers discretion.  .  I am the largest individual shareholder in LIONX and I have all of my personal assets in LIONX so I certainly have a vested interest (skin in the game) to protect and then grow the assets in LIONX.  If my perception of risk increases and I sense that the trend may be changing, I will do my best to protect shareholder assets and limit losses by selling or hedging positions until I am comfortable with the risk.  I have been managing money this way since 1990.  If this philosophy interests you and you would like to have a conversation, I would love the opportunity.  I firmly believe that there are no accidents and that God puts people in my path for a reason and it is my job to share with you what God is sharing with me.  My Email works 24/7 and my phone works during any market day.  Let’s start a conversation!

Globally, stock markets are up over $4 trillion since November, 2016!  It seems that the Trump agenda has been good for America and the world economies.  However the obstructionist radical left wingers appear to be doing everything they can to undermine Trump and his efforts to Make America Great Again.  It was sad to watch these far left democrats sit on their hands (failing to clap) as Trump delivered an encouraging message to Congress Tuesday night.  If the obstructionist decide to sabotage the upcoming debt ceiling debate, Trump could continue to fund the programs he likes and stop funding the ones he dislikes once the debt ceiling is hit so the sabotage could very well backfire on the democrats.

The dollar (UUP) has been rising since 1/31/17 (up 2.6%) in anticipation of the Fed raising rates later this month in an effort to put a damper on an inkling of perceived inflation.  I would not be surprised to see Italy, France and the Netherlands leave the EU (another Brexit) which would likely cause more money to flow into the dollar.  A rising dollar tends to put pressure on the prices of commodities like oil and gold and it could potentially hurt emerging markets that have dollar denominated debt.  A rising dollar is not normally good for American exporting countries as there products become more expensive to foreigners purchasing our goods.  Bottom line, If the Trump hating multi-billionaire obstructionist George Soros wants to see Trump fail he might attempt to use his billions to manipulate the dollar higher.  A higher dollar could undermine Trump’s efforts to bring jobs back to America and potentially throw us into a recession if we are not careful. In 1992, it could be argued that George Soros brought the Bank of England to its knees by destroying its currency and making over a $1 billion profit in one month.  Would he try to bring America to its knees?  I would not put anything past George Soros and his evil doers.  I believe most investors have a good buy philosophy but a poor sell discipline.  Everyone has a threshold of pain where they sell no matter what they may say especially if their life style is in jeopardy.  I do not say this to scare you but just to warn you that there are evil people in this world (terrorists) who hate Americans and they will not stop until they are dead.  However, Good will defeat evil in the end and that is what I try to stay focused on.  God is Good and He loves all of his children equally and unconditionally.  One must believe to receive.     

God is the one who enables you both to want and to actually live out his good purposes.  Philippians 2:1          

 

The Issachar Fund (LIONX) is a No-Load Mutual Fund that can be purchased at several major retail brokerages on their No-Transaction-Fee (NTF) platforms. Horizon Capital Management, Inc. (HCM) is the Fund Advisor, and I am the “independent” sole-owner of HCM, where I make all investment decisions to hopefully benefit the shareholders invested in LIONX.  LIONX is now available for purchase in all states.  I try to hire the best risk-adjusted mutual fund managers and fire them when they do not meet my expectations.  (No-Load mutual funds are sold without a sales charge; however other fees and expenses do apply to an investment in the Fund.)

 

Dexter P. Lyons
Issachar Fund Portfolio Manager
Member: National Association of Active Investment Manager (NAAIM) and Kingdom Advisors (KA)

My Linked In Profile Page:
http://bit.ly/DexterPLyonsLinkedInProfile

Disciplined, Focused, Alternative, Unconstrained, Independent, No-Mandate Manager, Actively Managing Market Risk Since 1990!

Issachar Fund (LIONX)
Foundational Scriptures:
1 Chronicles 12:32 & Revelation 5:5
“the Sons of Issachar were known for their understanding of the times…”
“Look
, the Lion of the tribe of Judah, the heir to David’s throne, has won the victory…”

Thanks for your time and I wish you a Profitable and Blessed Day!

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Disclosures below:
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting www.LIONX.net. The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.

 

Horizon Capital Management Inc., is not affiliated with Northern Lights Distributors, LLC.

 

Mutual Funds involve risks including the possible loss of principal.

The Fund may engage in frequent trading, leading to increased portfolio turnover, higher transaction costs, and the possibility of increased net capital gains, including net short-term capital gains that will be taxable to shareholders as ordinary income when distributed. The Fund may hold cash positions and there is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses, or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions. The Fund’s investments in large capitalization stocks may underperform Funds that invest primarily in the stocks of lower quality, smaller capitalization companies during periods when the stocks of such companies are in favor. Investments in small-capitalization and mid-capitalization companies involve greater risks and volatility than investing in larger capitalization companies. Small and medium-size companies often have narrower markets for their goods and/or services and more limited managerial and financial resources than larger, more established companies. The Fund is non-diversified, which means it invests a high percentage of its assets in a limited number of securities. A non-diversified fund’s NAVs and total returns may fluctuate more or fall greater in times of weaker markets than a diversified mutual fund.

The Fund invests in debt instruments which have varying levels of sensitivity to changes in interest rates, credit risk and other factors.  Many debt instruments are subject to prepayment risk, which is the risk that the issuer of the security will repay principal prior to the maturity date. The Fund could lose money if the issuer or guarantor of a debt security goes bankrupt or is unable or unwilling to make interest payments and/or repay principal. Changes in an issuer’s financial strength or credit rating also may affect a security’s value and have an impact on Fund performance. The value of the Fund’s investment in fixed income securities will fall when interest rates rise and the effect of increased interest rates is more pronounced for intermediate-term or longer-term fixed income obligations owned by the Fund. The Fund will invest a significant portion of its assets in securities that are rated below investment grade or “junk bonds.” Junk bonds may be sensitive to economic changes, political changes, or adverse developments specific to a company. These securities generally involve greater risk of default or price changes than other types of fixed-income securities and the Fund’s performance may vary significantly as a result. The floating rate loans in which the Fund invests are usually rated below investment grade and are generally considered speculative because they present a greater risk of loss, including default, than higher quality debt securities and may be less liquid than higher rated debt securities. 

The value of the Fund’s asset-backed securities may be affected by changes in interest rates, the availability of information concerning the interests in and structure of the pools of purchase contracts, financing leases or sales agreements that are represented by these securities, the credit worthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities that provide any supporting letters of credit, surety bonds, or other credit enhancements. The Fund’s investment in municipal securities carries additional risk including changes in federal, state or local laws that may make a municipal issuer unable to make interest payments when due. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenue, for the project or from the assets. Moreover, an adverse interpretation of the tax status of municipal securities may make such securities decline in value.  In addition to the risks typically associated with fixed income securities, loan participations carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loan participations may be unsecured or not fully collateralized, may be subject to restrictions on resale and sometimes trade infrequently on the secondary market.

The Fund uses investment techniques, including investments in futures contracts, forward contracts, options and swaps, which may be considered to be an aggressive investment technique. Investments in such derivatives may general be subject to market risks that may cause their prices to fluctuate over time and may increase the volatility of the Fund. The use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives, such as counter party risk and the risk that the derivatives may become illiquid. The use of derivatives may result in larger losses or smaller gains than investing in the underlying securities directly. Interest rate swaps are subject to interest rate and credit risk. Total return swaps are subject to counter party risk, which relate to credit risk of the counter party and liquidity risk of the swaps themselves. There may be an imperfect correlation between the prices of options, futures, and/or forward contract and movements in the price of the securities (or indices) hedged or used for cover which may cause a given hedge not to achieve its objective. There may not be a liquid secondary market for futures contracts and Forward currency transactions include the risks associated with fluctuations in currency. If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. Use of leverage can magnify the effects of changes in the value of the Fund and makes them more volatile and increases the risk for loss in adverse environments. Short positions are designed to profit from a decline in the price of particular securities, baskets of securities or indices. The Fund will lose value if the instrument’s price rises – a result that is the opposite from traditional mutual funds.

Investments in foreign securities and securities that provide exposure to foreign securities involve greater risks than investing in domestic securities. As a result, the Fund’s returns and NAVs may be affected to a large degree by fluctuations in currency exchange rates, political, diplomatic or economic conditions and regulatory requirements in other countries. The Fund also may invest in depositary receipts, including ADRs, which are traded on exchanges and provide an alternative to investing directly in foreign securities. Investments in ADRs are subject to many of the risks associated with investing directly in foreign securities. The laws and accounting, auditing, and financial reporting standards in foreign countries typically are not as strict as they are in the U.S., and there may be less public information available about foreign companies. Investments in emerging markets instruments involve greater risks than investing in foreign instruments in general. Risks of investing in emerging market countries include political or social upheaval, nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets and risks from an economy’s dependence on revenues from particular commodities or industries among others.
Long: Buying a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.

Short: Any sale that is completed by the delivery of a security borrowed by the seller.  Short sellers assume they will be able to buy the stock at a lower amount that the price at which they sold short
The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results.

 

NLD Review Code:
3186-NLD-3/3/2017

 

Dexter P. Lyons  .  106 Valerie Drive
Lafayette, LA 70508 . 337-983-0676
Dexter@LIONX.net
www.LIONX.net

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Dexter P. Lyons

Dexter P. Lyons is a Christian Money Manager seeking to honor God in his profession as a Portfolio Manager of a No-Load Mutual Fund.